Bloomberg Intelligence Stocks Slide as Trump’s Tariff Reprieve Proves Fleeting
Apr 10, 2025
Michael McKee, Bloomberg's International Economics and Policy Correspondent, shares his insights on the latest U.S. CPI data, revealing a broad cooling of inflation that may offer consumers a brief respite. However, rising U.S.-China trade tensions are causing significant anxiety on Wall Street, leading to a drop in stocks, the dollar, and oil prices. The discussion also touches on the implications of ongoing tariffs for corporate earnings and economic growth, highlighting the complex environment investors must navigate.
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Advice on Market Volatility
- Stay the course during volatile market phases and avoid panic selling.
- Diversify your equity holdings and consider trimming excessive exposure to equities.
Earnings and Guidance in Uncertain Times
- First quarter earnings may look artificially strong due to pulled-forward demand.
- Guidance could be overly pessimistic because of uncertainty around tariff impacts and economic shifts.
Valuations Shaken by Tariffs
- Market valuations started the year high, requiring strong economic conditions to hold.
- Rapid tariff implementations have disrupted these expectations and lowered valuations.